Taxes. Woo-hoo! Not your reaction? Didn’t think so.
Did you know that in 2015, a new record was set for the most U.S. citizenships renounced? Did you also know that the government jacked the fees up hugely to process renunciation applications? Of course, those renouncing their citizenship tend to be the wealthiest, who are always slammed by federal taxes and capital gains taxes.
One look at the number of refugees pouring into the country and it’s clear the U.S. is still the place to be for the economically underprivileged. It’s still a nation of great opportunity and high standards of living. But, while those things may fluctuate downwardly, independently successful entrepreneurs, business owners, and investors are finding themselves in a position of disadvantage relative to the government that is supposed to represent them.
When you move offshore, you can drop several tax brackets with just a few simple, legal, and customizable steps.
As a general rule, real estate is not reportable to the IRS. This is mostly true because offshore real estate investors strategically place their assets in an offshore trust or foreign corporation. While it’s true your shares in such structures will need to be reported, real estate is not a foreign financial asset required to be reported.
Offshore trusts, LLCs, and IBCs are all common examples of financial entities used to purchase both residences and rental properties. You can enjoy the same tax breaks utilized by companies such as Google, Microsoft, and Apple. The boom in international travel, and the ever-increasing use of the internet to earn a living or manage your business from afar, has led to the expanding use of offshore banking and offshore trusts to help manage income, money, and assets so that they work best for you. Many entrepreneurs, both young and old alike, have made the decision to relocate or diversify their financial portfolios by opening offshore accounts.
It makes sense then to seek to reduce your U.S. tax liability, increase your business’ profits, and enjoy some of the most attractive and exotic climates in foreign regions of the world. It’s important that you get the steps right in order to protect your assets from the very beginning, but also maximize your earnings and limit your U.S. tax liability.
Shifting to a lower (possibly the lowest) tax bracket is not the only benefit of doing business offshore, however. You will gain the advantages of secure asset protection, prudent estate planning, strict confidentiality, much better returns on your investments, and the ability to advance active business interests overseas from a zero tax jurisdiction with basically airtight confidentiality.
All of these reasons, of course, draw people to the offshore world. But one thing about doing business offshore, whether it is simply banking, investing, or actual business operations and entities, is the freedom from tax-mad governments.
Dave S., a 53-year-old multiple business owner from Florida, transferred all of his assets into various financial structures in Belize, and dropped from the 35% U.S. tax bracket to the 5% tax bracket. He’s making more money than ever, happily enjoying the island life, and rests easily knowing his assets are far more secure here than they would be elsewhere.